How do I make a SAR to SOCA?

You can do this either by:

• Using SAR Online
• Moneyweb and Encrypted Bulk File Submissions (for details of how to sign up for this free service you can phone 0207-238-2888).

Note: this service may be restricted to the number of disclosures made.

• Using the SOCA Preferred Paper SAR Form (hard copy) and then posting it to: UK FIU, PO Box 8000, London SE11 5EN.
• If the report is seeking consent in hard copy form it can be faxed to UK FIU on 0207-238-8286

Please see our web page ‘‘Suspicious Activity Reports from the Regulated Sector (SARs)’’ for further details.

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How do I know which method to use?

SAR Online

• SAR Online is SOCA’s preferred and practical way of making a report and can be used by anyone with internet access and an e-mail address. Access to SAR Online can be made via the related link in above or via www.soca.gov.uk.
• SAR Online can be used by those persons who are required by the Proceeds of Crime Act 2002 and the Terrorism Act 2000 to submit Suspicious Activity Reports (SARs) to the Serious Organised Crime Agency (SOCA). This enables the reporter to submit a report securely and eliminates the need to complete, post or fax paper based reports.
• The initial SAR Online registration process to set up and obtain a Log-in account will take several minutes to complete. It is important to read the explanatory note prior to the initial ‘registration process’. This describes the site structure and the steps you must follow for the key processes.

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Moneyweb and Encrypted Bulk File Submissions

• Those who currently use the Money.Web system or Encrypted Bulk File Submissions to submit electronic reports should continue to do so.
• If your organisation frequently submits a large volume of SARs this may be a more convenient and practical facility to use. For more information please contact the Money.Web support team on 020 7238 2888 or email to moneywebsupport@soca.x.gsi.gov.uk.

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Am I Suspicious?

Any one or more of the following may be indicators of suspicion. This list is not exhaustive

• Is the person's behaviour unusual in the circumstances?
• Has the person refused to supply any form of identification and if so, why?
• Is the activity unusual in itself?
• Is the activity unusual for the customer?
• Do I have other knowledge which leads me to believe the customer or activity is criminal?
• Do I think the property may be criminal?

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Paper Submission (Using the SOCA Preferred Paper SAR Form)

• For those unable to use SAR Online or Moneyweb the Preferred Paper Forms are available and can be downloaded from the SOCA website.
• To obtain these forms you will require Acrobat 5.0 Reader (or later) software installed on your personal computer. Acrobat Reader allows completed forms to be printed from your personal computer. However it does not allow completed or partially completed forms to be saved. The ability to save forms is available commercially with the Adobe Acrobat 5.0 (or later) full product.
• Alternatively you can obtain copies of the forms by contacting SOCA SAR Control on 0207-238-8282 selecting option 2. Details of how to complete this form will be enclosed with the forms.

All hardcopy reports should be sent to:

UK FIU, PO Box 8000, London SE11 5EN
Fax 020 7238 8286.

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What does SOCA find helpful in a SAR?

Try to answer the six basic questions:

• Who?
• What?
• Where?
• When?
• How?
• Why?

Other details (if known) should include:

• Subject’s name and date of birth
• Subject’s address - including postcodes
• If appropriate to your business, include subject’s account number/policy numbers and transaction details including recipients account details
• Full reason for suspicion including date of activity, type of product or service and reason for suspicion, how activity will or has taken place.
• Note: It is important that the relevant information is completed within the appropriate fields and not merely placed within the 'Reasons for Suspicion' field.

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When should you submit a SAR?

• As soon as you have a suspicion or knowledge of money laundering by another person a SAR should be made.

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What is Suspicion?

In two recent cases the Court of Appeal dealt with the meaning of suspicion in money laundering legislation. See R v Da Silva [2006] All ER (D) 131 (Jul) and K Limited v National Westminster Bank plc (HMRC and SOCA intervening) [2006] All ER (D) 131 (Jul).

The Court said suspicion would arise when:

“there was a possibility which was more than fanciful, that the relevant facts existed. This is subject in an appropriate case, to the further requirement that the suspicion so formed should be of a settled nature”.

In K Limited the court said that this definition should apply in both criminal and civil cases

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What is meant by Disclosure?

• A disclosure is sometimes referred to as Suspicious Activity Reports or “SARs”
• An “authorised disclosure” (s338) is a disclosure made to a company’s Nominated Officer (or directly to a constable, customs officer or SOCA) that identifies criminal property.

The making of an authorised disclosure provides a defence against a charge of money laundering (i.e. dealing with the identified criminal property as per POCA ss327-9) where:

• The disclosure is made before the person (the “alleged offender”) undertakes the money laundering act relating to the identified criminal property and the person has received the appropriate consent: from the nominated officer where the disclosure is made to her, or from a customs officer, constable or SOCA where the authorised disclosure is made directly to them.
• The disclosure is made after the act and there is a “good reason” for the disclosure not being made before the act (and thus subject to the appropriate consent).

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What is meant by Nominated Officer?

Under s330 or s338 of POCA a nominated officer is a person nominated by an employer to receive internal disclosures (i.e. money laundering reports) and to pass those to the authorities where appropriate.

• A Nominated Officer is required to seek consent from SOCA where an employee makes an internal report to them before the prohibited act takes place. The nominated officer should not give consent to the undertaking of the prohibited act until they receive ‘consent’ from SOCA.

Note: It is an offence for a Nominated Officer to give consent to a prohibited act where:

• Consent has been refused by SOCA and the moratorium period has not expired.
• Consent has not been received from SOCA and the seven day notice period has not expired.
• A person who is not a Nominated Officer is also able to seek consent directly from a constable, customs officer or SOCA.

Firms regulated by the Money Laundering Regulations 2003 [“ML Regs”] must (see Regulation 7) nominate a person to receive such disclosures. Firms not covered by the ML Regs are not obliged to have a nominated officer and are not subject to the offence of failure to disclose (POCA s330).

Where a nominated officer is appointed by a business which is not in the regulated sector, a failure to disclose is contained in the s332 of the Act.

Where nominated officers in either the regulated or non-regulated sector receive an internal report and make a POCA s338 disclosure to the relevant authority (SOCA, Constable, Customs Officer) seeking consent to undertake an act, they should not give consent to the act (e.g. to the internal reporter) unless:

• They have consent from the relevant authority
• The notice period (seven working days commencing on the day after the disclosure was made) has expired and consent was not refused
• The moratorium period (31 calendar days) has expired after consent was refused.

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Will I be told when you have received the report?

Yes - If you make an electronic submission(s) you will receive an allocated number on receipt of the report.

No - if you make a paper submission SOCA will not send an acknowledgement letter.

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When will I hear something if I’ve asked for consent?

The Consent Team deals with all consent issues and will contact you as soon a decision is made. This can take the full seven working days allowed under the legislation (known as the Notice Period - see below). You must not assume consent will be granted.

The seven day notice period commences on the day after a disclosure is made. The notice period consists of seven ‘working’ days and excludes bank holidays and weekends.

The purpose of the seven day notice period is to allow SOCA and its Law Enforcement partners time to risk assess, analyse, research and undertake further enquiries relating to the disclosed information in order to determine the best response to the request for consent.

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Will I get feedback on my report?

SOCA is working with all participants in the SAR regime to ensure that the right level of meaningful feedback is provided. Feedback may not be appropriate to every individual SAR.

If a SAR leads to law enforcement action then it is likely that the law enforcement officer will contact the reporter and maintain that contact until the case is closed, for example to the end of a trial.

In some cases law enforcement may wish to act on information contained in a SAR but for operational reasons may not contact the reporter. SOCA will provide feedback on the degree to which SARs have been used - both by SOCA and other users - but that will be in relation to SARs as a whole and not each individual SAR. In some circumstances SOCA will also provide individual businesses with feedback in relation to the SARs that they provide.

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Is my report Confidential?

Yes. SOCA adheres to and promotes the provisions of the Home Office circular regarding confidentiality of SARs, No. 53/2005 (Money Laundering: The Confidentiality And Sensitivity Of Suspicious Activity Reports (Sars) And The Identity Of Those Who Make Them).

If you wish to report a breach of SAR confidentiality please contact the confidentiality breach line.

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What do SOCA and Law Enforcement do with my report?

Below are some examples.

SOCA:

• Prioritise and process all consent requests, contacts reporters with results of decisions made.
• Records all SARs on the SOCA database.
• Analyses SARs on the SOCA database to extract strategic and tactical intelligence
• Makes SARs available to Law Enforcement for investigation.

Law Enforcement Agencies (LEAS):

• Prioritise and deal with all consent requests forwarded by SOCA.
• Check SAR subject details against Force Intelligence databases for relevant additional information/current or future operations.
• Depending on outcome of above, commence investigation or uses information to enhance existing operation or knowledge of subject

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What is the purpose of SARs?

SARs are a vital weapon in the UK’s armoury to prevent and detect crime, and to protect the integrity and reputation of the UK financial system.

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Do SARs really make a difference?

Yes they do. Comprehensive data is not held on the overall number of prosecutions, convictions and other crime reduction and prevention actions taken as a result of SAR information. We estimate that around one fifth of all SARs received identify a new subject of interest and around one quarter lead to new enquiries in relation to direct taxation matters. Between a fifth and a third of SARs disseminated to the National Terrorist Financial Investigation Unit either lead to a longer term investigation or add substantially to an existing investigation.

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What is the information used for?

Each and every SAR has many different uses and all contribute to the prevention and detection of crime. They can lead law enforcement to an otherwise undiscovered criminal asset or movement of criminal funds. They can also provide corroboration or added detail to an existing intelligence picture.

SOCA continuously analyses the SAR database to build its strategic knowledge of how criminals operate. For example are they attracted to certain sectors or businesses, or to particular financial products or services, are there particular geographic hot spots of money laundering (placement of cash, purchase of high value goods, etc). A SAR may present a law enforcement officer with a tactical option to recover criminal assets. That same SAR may also help establish a geographic picture or the vulnerability of a particular sector or product. It may be used again in an analysis of suspicious activity before and after a particular event, for example a terrorist incident. A single SAR can be used many times for many different purposes.

Intelligence leads and enhancement

• Identified new avenues of investigation for tracing a subject wanted by Interpol for money laundering
• Three arrests, in two separate cases, were made following investigation of SARs which indicated the proceeds of fraud
• A number of SARs enabled law enforcement to link a subject responsible for suspicious cash placement into a wider criminal network. Without the SARs it could not have developed the investigation further.

Asset recovery

• Identified restructuring of assets prior to confiscation orders being issued
• Led to restraint of £200,000 following investigation of a single SAR
• Led to cash seizures of £460,000 and $380,000 on successive days
• Led to seizure of £103,000 which may have been intended for purchase of Weapons of Mass Destruction
• Led to restraint of £25m through Consent requests to FIU
• A single SAR identified a five figure cash sum, the realisable assets of drug trafficking.
• A single SAR alerted law enforcement to the activities of a money laundering suspect leading to a five figure cash seizure

Other uses of SARs

• Identified criminal conduct by officials in Public service
• A SAR gave vital leads to a drug trafficking investigation leading to two arrests and the seizure of substantial quantities of drugs
• Led to the arrest of a man who was charged with identity theft
• Identified a major case of market abuse

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